Debt Free

It’s sad, but true. Too many people slog through their daily existence, yearning with every fiber in their being to be freed from the constraints by which they’re bound. The greater tragedy is that many of these ties that bind are of their own making. Many of the decisions they make, for better or worse, conspire to keep them forever lashed to the pole of an ultimately unfulfilling existence. Why does this happen?

If you had a coffee with many of the same people at the beginning of their journey through life, they’d expound a fountain of ideas and dreams. Years later however, the demands and realities of daily life have pushed their dreams to the side, and most would be happy with just a few spare minutes or pennies they could call their own.

How can this tragedy of unfulfilled promise be avoided? Are the majority destined to be locked away in a prison of their own creation, forever barred from attaining their dreams and aspirations? Sadly, yes, for many that will be their reality. Only a select few will ever break free and rise to master, or create, their destiny. Why is this, and how can you be one of those that breaks free from the chains of the existence that falls sadly short of attaining much of that which you’ve been denied?

Ironically, it’s the very pursuit of the dream itself that deny many people the opportunity to achieve it. There are 4 things that can ultimately lead to a life of freedom and financial security. Many extremely successful people use these as basic tenets of their lives. If you have financial freedom, weather through needing less, or making more, many other freedoms will follow.

Key to Freedom 1 –
Preparation - Lay a Foundation – You can’t only wish for success and freedom, you’ve got to plan for it. The problem is that too many people jump headlong into what they believe life should be, without ever planning on how to make it what they want. You can’t rely on decisions made on the fly to deliver the life to which you aspire. You must develop a plan that fits your goals and personality. You’ll than have a road map to follow. Few people would ever build a home, or begin any other complex project without a plan, yet with their lives, perhaps the most complex project of all, few people ever set out with such a roadmap.

Key to Freedom 2 –
Timing – It’s been said that timing is everything. While this overstates things a bit, there’s no denying that timing is of the utmost importance. When the milestones in life happen, the order in which they occur can do much to determine your ultimate success.

Key to Freedom 3 –
Frugality – More than almost anything else, frugality can and does impact where you end up in life financially. This is especially vital when you’re young, as many people underestimate the importance of a few dollars here and there. The other thing that frugality buys is the freedom from financial obligation that becomes so oppressive for many people. In our consumer-centric society there is pressure to spend from every direction. It can take discipline to maintain one’s financial composure in the face of such a storm. A bit of need vs. want analysis doesn’t hurt either. Some restraint early can lead to huge returns, and the ability to relax later. It also establishes a pattern of spending less than you make, which is one of the cornerstones of not only financial success, but success in general. Many family problems stem from financial troubles.
 

Avoid the compulsion to spend, but yield to some wise investing, a behavior that too few young people exhibit. I was talking to someone today that was talking about buying some nice 19” chrome wheels for his car. When the subjecting of investing the $1,200 instead of buying the wheels was floated, he opined that he really had no desire to invest, as he’d just make more money later in life. The fact is that he may not, and he probably will never be able to catch up if he does. He’s 25 so figure that the $1,200 he spends today would have about 40 years of growth potential. Invested at 8%, it would grow to about $26,000. If he managed to get a 10% return, it would be worth $54,300. That’s just one exhibition of frugality, and investing the returns. You can see how one of these a year could add up substantially.

Key to Freedom 4 –
Initiative – If you want it, you’ve got to do it. That is, for many, the hardest part of the journey. Far to may dreams go unfulfilled, and too many great ideas remain unrealized, because the dreamer never got around to making it into more than just a dream. Don’t make that mistake. Weather due to fear, laziness, feelings of inadequacy, or a lack of confidence in their abilities, the majority of those with the key to success in their hand, just never put it in the lock and turn the thing. It’s sad, but true.

Whatever it takes to make yourself actually get out of the blocks, just make it happen. After you’ve started you must apply perseverance until success and freedom are yours. Don’t rest until they are, but, at the same time keep your priorities in order so you don’t miss what life has to offer along the way.

Have a great, debt free weekend.

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I've written, posted, and spoken often about the importance of leverage on the path to success, both financial and otherwise. That extends to leveraging the power of relationships. The people you meet and associate with can be one of your most powerful tools, both in life and in business. Yet, far too many people fail to capitalize on them. It's vital to maximize every advantage you're presented with in life. Often, a few percent can be the difference between success and failure. Leveraging relationships can give you those precious few percentage points, and much more. Many individuals and business owners either fail to realize this or fail to effectively put this principle into effect.

I too have been guilty of failing to effectively leverage relationships with some of the extremely powerful and effective individuals I've had the fortune to meet. Throughout the course of my career, both academic and professional, I've had the occasion to build relationships with Fortune 100 CEOs and other top level executives, wildly successful small business owners, publishers, physicians, highly respected attorneys, professional sports franchise front office personnel, and top professional athletes. Leveraging these relationships does not mean plying them for investment advice and stock tips, although many of the aforementioned individuals could doubtlessly provide some real gems in that area.

For many, it begins during your academic career. College is a tremendous place to forge long lasting friendships and relationships, and people find many of their best friends while at college or university. In fact, it could be (and has been) said that one of the primary benefits of your time spent there is the social network you build. That should be a treasured resource that will serve you well throughout the rest of your life. You'll have few other opportunities in life to build such a vast and diverse social network. The people in your network will go on to enjoy fantastic and varied careers in all walks of life, from public servants to corporate executives.

Many of the successful individuals I've been fortunate enough to meet got that way in part through effective leverage of their relationships. It takes much hard work to be sure, but it comes back to working smart, not just hard. For example, if you're trying to get a product into a major retail chain, it can be extremely difficult to get your foot in the door of the purchasing agent's office. That agent sees countless products every day. For purchasing agents of Costco, Walmart and the like, it's almost like being a highly respected agent in Hollywood. Every up and comer is trying to get through your door, and have just five minutes to impress. However, if you had a relationship with the Chairman of one of these retail giants, that could be leveraged to get you that opportunity.

Weather you're successful from that point forward or not, can be a combination of factors, but without leveraging the relationship with the senior executive, you'd have been lucky to have even gotten your product in front of the right person. In addition, the recommendation of the executive gives you instant credibility, something other sales reps or business owners would have to spend months or years building. It's that credibility that can be the most important, yet difficult thing to establish, yet leveraging of relationships can allow you to bypass that step completely, and forge an effective, new relationship.

Therein lies one of the most important components to effective relationship leveraging. You must use it to widen your existing relationship network. Your relationships are one of the most important and satisfying resources at your disposal. Through effective leveraging of your network, you'll find fantastic business opportunities, great friends, real estate deals, employees and employers, possibly even your spouse.

Becoming debt free involves strengthening the three legs of the financial triangle; increasing income, reducing expenses, and leveraging your existing income to do more with what you already have. A key component of all three can be effective relationship leveraging. You can increase your income through a better job or business success. You can reduce your expenses through opportunities you find through your network. How many times do you hear about great deals or money saving ideas through friends? You can also do more with your existing assets through the opportunities presented via your network as well. Leveraging your relationships, and building new ones can make all the difference.

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It doesn’t matter your endeavor; starting a successful business, building a house, cleaning the garage, winning a football game, running a successful military operation, or yes, getting out of debt. There are 4 keys to success. They are the same for anything you might be attempting.

1 - Plan For Success – You’ve got to at least have a plan. It doesn’t have to be the best plan. It doesn’t even have to consider every eventuality. But you’ve got to at least have one. It should also be written down somewhere. If it’s just rattling around in the old noggin’, sorry, it doesn’t count. Having a plan, however rudimentary it may be, will force you to see things you might otherwise miss, and to pick up problems early, before they become insurmountable. It will also make you look at different alternatives to achieve your objective.

2 – Initiate the plan – You’ve got to actually get off your fat butt and set the plan into motion. The world is full of people who come up with great ideas, even ideas that could change the world for the better, or make them wealthy. Many of those people are still living in a van, down by the river, because that idea in their heads remained just that;an idea in their heads.

3 – Focus on your objective – It’s easy in this crazy world in which we live to let the multitude of distractions get in the way. You can’t let yourself get distracted. I’ve said it in other posts; treat every task like a military operation. Focus on the objective until it’s accomplished.

4 – Don’t whimp out. You can’t quit. Ever. You may have to refine what you’re doing. You may even have to rethink things completely, but you can’t quit. There are millions of dejected quitters that stopped before they reached their goal. Many were oh, so close. If you fail once, get back on the frickin’ horse, Tex! The world is also full of extremely successful people with multiple failures in their background. Even Donald Trump, the most successful real estate investor in the world, has had his down periods. One of his companies even declared bankruptcy. He didn’t, however, stick his head in a noose and give up. The key is to treat failures as a learning experience and not to repeat them. Find a way to succeed

These 4 keys to success will serve you well in anything you’re attempting. Just attempt something, please.

Posted by debtblog at 02:51 PM | Permalink | Comments (0) | TrackBacks (0)

Why You're Not Earning Enough Money - Online or Off

Well, this is assuming you aren’t, or aren’t earning anywhere near as much as you want to be earning. The secret to earning money is the same both online and off, really. You must provide solutions to people’s problems. Not just ideas, or ways to help them get what they want, you must help get them out of a jam. When you can be a solution provider, people will flock to your door, website, or tradeshow booth. 

As anecdotal evidence, I’ve noticed the best response from articles I’ve written, blog posts I’ve published and web pages on any of my websites has come from ones that help people overcome a specific problem. If you can help them, they will reward you for your efforts. You can help people avoid problems altogether, which actually provides them greater assistance, but you won’t get the response or gratitude you’ll receive if you help people out of an existing problem.

If, in providing that solution, you can earn a living, so much the better. If you genuinely have a way that eases people’s pain, literally or figuratively, you’ll kick they guy’s butt that spends his time in the mousetrap lab. If your solution is unique and effective, people will have no choice but to come to you to get it. They’ll be more than happy to do so. You make their personal or business life easier, and folks everywhere will reciprocate.

If you’re providing a solution to a common problem, you’ll obviously have a wider audience from which to draw. If the problem is a difficult one to solve, you’ll have even more success. Providing specific solutions will create a stream of referrals. Two important points here; the solutions you provide must address a specific problem, and they must be highly effective.

If you can do these two simple things, you’ll be rewarded with a handsome paycheck. Now you’ve provided yourself with the solution to a problem as well.

 

Posted by debtblog at 02:50 PM | Permalink | Comments (0) | TrackBacks (0)

1^st – Get a Million dollars! Seriously though, there are some ways you can become a millionaire that are proven to be successful. Real estate, consistent investing, and starting your own business. Many people will try these things with varying measures of success, but not all will become millionaires. Most millionaires in the U.S. have some common characteristics.

1 - Frugality – It's true. Most millionaires are cheap. Research and my own experience bears this out. Sadly, I can't yet testify to this from personal experience, but I've met many hundreds of millionaires through the course of my business, and it's true. Most are quite frugal, and some are so tight they could eat a lump of coal and it would come out a diamond. That's not to say millionaires don't spend money, but most thoughtfully analyze any purchases and have to be convinced of the value before they part with any of their hard earned millions.

2 - Goal Setting – Most millionaires are good goal setters. They plan for success by actually setting quantifiable goals, and upon achieving them, setting still higher ones. Most actually write them down, and usually take the time to evaluate their progress.

3 - Organization – Well, I'm doomed to failure I suppose, because that is definitely not one of my strongest qualities. Most millionaires are able to keep juggling all their tasks without dropping any.

4 - Ability to Recognize Their Strengths and Weaknesses – Most millionaires are excellent judges of talent and ability, especially their own. They know their own strengths, and use them to maximum advantage. At the same time, they know what they should outsource or delegate to those that are better then they. This is key. Sadly, you'll not be great at everything. Find someone who is strong where you're weak, and let them handle those areas. Many small business people have tremendous problems in this area, and try to wear all the hats. Don't, your head's not that big.

5 - Initiative – Most millionaires have drive and ambition. They'll take the initiative. They not only think about things, they actually do them. Too many people never get out of the gate on any of the multitude of ventures they have in their head. Thinking is definitely important, but you must not only think, you must do. If you don't take the ball and run with it, you'll never score that touchdown. Too many people sit in the end zone, waiting for that touchdown pass to land in their hands. For most, it simply doesn't work that way.

6 – Long Term Thinking – Most millionaires have the ability to look down the road and get the big picture, just like they told you to do in driver's ed. Too many people have fallen into the short-term mentality that's so prevalent in modern society. College graduates want to be executive VP the first year, and kids right out of high school think they should be a journeyman, making top dollar, right out of the gate. Well, that's not how it goes, kids. Unless you're LeBron James, you don't jump right into a starting spot in the NBA, with a $50 million Nike contract, or the equivalent in the business world. Developing wealth takes a long-term outlook and the ability to plan for the future.

Danko and Stanley noted in their book, “The Millionaire Next Door” (a book I highly recommend),  that the average U.S. millionaire is a 57 year old, self employed, family man. He's a hard worker, but not obsessive, putting in an average of 50 hrs a week. They found that 66% of these millionaires are self employed. The rest work for someone else, so if you're not of the “work for myself” mentality, or if you've already tried it and didn't like it, there's hope for you too.

If you are looking for a more agressive way to make a million dollars, I can suggest the 12 Month Millionaire. It may or may not make you a millionaire in 12 months, but it is full of valuable information to market any product on line, or off. It can seriously fast track your efforts to becomming one of our nation's growing legion of millionaires. You should really check it out. 

 

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What if you're trying to get a leg up by starting your own business? Not a project for the faint of heart, that one is. It scores high on potential though. Many enter the home business arena with big dreams but little or no idea of what they're really doing. Far from a recipe from getting debt free, such ignorance is really a recipe for disaster. The beauty of the Internet is that prospective and new business owners have a level of information at their fingertips that was undreamed of only a decade ago. The Internet is also, itself, an arena for new businesses. It's been a boon for those wanting to just dip their toe into the small business waters without having to dive right in.

That ease of entry has also been part of the curse for small business owners. Because it's so easy to enter the small business world now, it allows those without adequate preparation to jump right in, no matter their level of expertise or experience. A boon for some, and the success stories of those who do make it big draw in others like lobbyists to a congressional mixer. The American spirit of entrepreneurship and resourcefulness demand that we forge ahead into new frontiers. Small business is just the latest wilderness to conquer for the American adventurer.

Being involved in your own small business can be a great thing. The feeling of accomplishment and independence are second to none. To make it so, however, you need to jump in with both eyes open. The most important thing is planning. Before you make the decision to strike out on the trail of small business, you need a plan, otherwise you're throwing your start up capital in a Cuisinart and hitting “puree”. A detailed business plan will include all aspects of your business, such as sources of funds, uses of funds, a marketing plan (what will you be selling, who will you be selling it to, how will you promote it, and where will you sell it), 1,3 and 5 year financial plans, resource requirements (personnel, financial, equipment, real estate), etc. There are entire books written on how to make a good business plan, and some great business plan software is available too.

The bottom line is that a business plan will give you a path to follow. It will also help you think through all the details (there are many)of the journey on which you're about to embark. In addition, if you'll be seeking any funding, the investors or financial institutions will want to see it. You'll no doubt have to revise your business plan many times over the years as your business grows and evolves, and you should. Unlike the U.S. Constitution, your business plan is a living, breathing document.

Unless you are one of those who's accumulated enough wealth to have a year's living expenses or so, not including your new business capital, or your spouse makes enough to support the family, don't quit your day job just yet. If you're beginning a business with an existing customer base, and you can hit the ground running, you may be able to fudge this rule a bit. You'll have enough financial stress associated with your new business when it's in the start up phase, you don't need the additional stress personal finance problems can bring. Many businesses have been successfully bootstrapped with insufficient startup capital, but many more have dismally failed. Avoid having insufficient start up capital. Lack of capital is a very common mistake.

Once you've all your ducks in a row, start shooting. You'll probably have many people who say you're crazy for starting your own business, tell you to get a real job, or say you can't succeed. This is normal. It's the “crab in a barrel” syndrome. If there are a bunch of crabs in a barrel and one tries to climb out, the others will try pull it back in. That's what many friends and family will try, even if only in the guise of concern and caring. Don't listen! Having your own business can be one of the most rewarding and fulfilling experiences of your life, but you've got to stick to it. There will be times when wearing all those hats can make your head hurt, but you've got to just tough it out. It will take perseverance, focus and persistence, maybe more than you thought you had. You've got to have drive to succeed, and you need the will to win.

If you've planned well and you're offering something that people want (itself part of the planning process) you will succeed. You need to find what you can provide that people want or, use another winning strategy, make them want it. It's a combination of marketing and organization. If you don't think you have those talents, then maybe you shouldn't be doing this. On the other hand, you may surprise yourself. You may have an undiscovered talent that is waiting to be set free. You may be able to make up for a relative lack of talent with persistence and hard work. Many have taken that path to success. The reality is that everybody has some sort of talent, and you're no different. You've got to get started, go for it, and don't ever stop. Don't expect overnight success. It may take years before you find yourself enjoying the superb vistas from atop the mountain, but you'll enjoy them.

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Americans are lucky. Face it. America is the only country in the world where poor people are fat. We’re not talking a few over, either. We’re talking way overweight. In most countries around the world, the poor are lucky to get something to eat, much less enough to make them obese. Something else to differentiate the poor in America from the poverty stricken around the globe is the TVs, and the cars, and the DVD players, and the satellite dishes, and the furniture, and the cigarettes, and the….well, you get the picture. Even the poor in America seem to have an awful lot of stuff. They eat at restaurants, for god’s sake. So what if it’s only the two tacos for $.99 at Jack in the Box.

The point is that we’re lucky to be in a land of unbridled opportunity. Even poor in America you’ve got it better than anywhere else in the world, especially if you want to be successful. Almost anyone can rise from the most humble origins to become CEO of a Fortune 500 company. Andrew Carnegie, one of the richest men of the last century, began as a messenger for Western Union.

John H. Johnson was born in a poor town in Arkansas in 1918. His father died when he was eight years old. His mom was a cook, and saved her money so they could move to a place with more opportunity and better schools for her children. Her son went on to found Johnson Publishing Co., a business empire with interests in publishing and cosmetics. They have offices in New York, Los Angeles, Washington, DC, Detroit, London and Paris. Last year, they had gross sales of $412 million.

Oprah Winfrey began poor, living on a farm with her grandmother. She had a rough childhood, suffering sexual abuse and being sent to juvenile detention when she was 13. Through guts, vision and perseverance, she’s now the head of one of the most successful media companies in the world. She was the first black woman in the nation to become a billionaire.

You’ve all heard of Sam Walton and probably shopped in one of his more than 6,000 super sized discount stores. He started out the child of a farmer who was so poor, he had to quit and get another job so he could feed his family. That’s poor. Sam had a modest start, delivering newspapers and milking cows. He ended up revolutionizing retailing. It took determination, vision and lots of extremely hard work. He put himself through the University of Missouri by again delivering newspapers and bussing tables in exchange for a meal.

Upon graduation, he had an entry level position at JC Penny, making a paltry $75/week. After a stint in the military during WWII, he parlayed his knowledge of retailing gained at JC Penny, a loan from his father in law, and his military savings into a small retail store franchise that was quite successful. After selling this, he began the chain of stores that would one day become Wal-Mart, and make Sam a billionaire.

All of these people grew from poverty to become business titans, revolutionizing their respective industries. They did this in different eras, but had some things in common. First of all, they were determined. They had drive like a Kenworth down a mountain road with no brakes; virtually unstoppable. Starting from nothing, you do little without perseverance. You must get started and then never stop. For most successful people, getting started wasn’t the problem. They were driven to succeed, and wouldn’t know how not to move forward.

They got an education. There are many tales of success by those without one, but the percentages side with those who do. It’s not only about what you learn in books, but what you learn from the people you meet, and the contacts they provide you throughout your life that are important.

They had vision. You need to see the future and what you can do to make it better. The vision on how you can do something better, shift the paradigm, or do something that’s never been done, is essential to true success.

No excuses. There is a path to success for everyone. Now, get moving.

Posted by debtblog at 04:32 AM | Permalink | Comments (0) | TrackBacks (1)